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Giordano International Limited (Stock code: 709) May 22, 2008 (Thursday) 2008 First Quarter Results
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22 May 2008Giordano 2008 First Quarter Results2 Group Operations Highlights Three Months Ended March 31, 2008 Group turnover 15.1% Retail & Distribution turnover 16.4% Comparable store sales 5.3% Mainland China retail sales 40.8% Mainland China gross profit 61.3% Group gross profit 17.2% Group gross margin46.9% Net cash & bank balances (HKD millions)561 Inventory turnover on sales (days)27
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22 May 2008Giordano 2008 First Quarter Results3 Turnover YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Garment Trading & Manufacturing Turnover 1 3.5% 34.9% 50.1% Retail & Distribution Turnover 16.4% 13.4% 10.0% Group Turnover 15.1% 15.3% 13.2% Group Gross Profit 17.2% 10.6% 8.2% 1 Sales to external parties, net of intra-group sales Divisional Highlights Group turnover increased by 8.3% YOY in Apr-08.
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22 May 2008Giordano 2008 First Quarter Results4 Retail & Distribution Turnover by Brand Three Months Ended March 31, 2008 Giordano & Giordano Junior, 85% (84%) 1 BSX, 5% (7%) 1 1 YOY figures in brackets. Giordano Concepts, 5% (3%) 1 Giordano Ladies, 5% (6%) 1
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22 May 2008Giordano 2008 First Quarter Results5 Turnover YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Giordano & Giordano Junior 17.0% 10.7% 5.7% Giordano Ladies 15.7% 24.8% 17.8% Giordano Concepts 53.1% N/A BSX 11.4% 11.1% 9.9% Retail & Distribution Total 16.4% 13.4% 10.0% Retail & Distribution Division Operations Highlights 1Q08 Retail & Distribution gross margin widened to 49.4% (1Q07: 48.0%). Apr-08 Retail & Distribution sales and increased by 10.0%.
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22 May 2008Giordano 2008 First Quarter Results6 Comparable Store Sales 1 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Giordano & Giordano Junior 5.2% 6.5% 2.0% Giordano Ladies 6.5% 17.5% 9.1% Giordano Concepts 1.1% N/A BSX 11.4% 8.7% 2.3% Retail & Distribution Total 5.3% 5.8% 2.4% Retail & Distribution Division Operations Highlights 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration
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22 May 2008Giordano 2008 First Quarter Results7 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 17.0% 10.7% 5.7% Comparable Store Sales 5.2% 6.5% 2.0% Change in Number of Outlets 7 7 7 7 27 137 Accounted for 85% of Retail & Distribution turnover for the three months ended Mar-08. Total 1,730 outlets as of end Mar-08. &
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22 May 2008Giordano 2008 First Quarter Results8 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 15.7% 24.8% 17.8% Comparable Store Sales 6.5% 17.5% 9.1% Change in Number of Outlets 1 8 Accounted for 5% of Retail & Distribution turnover for the three months ended Mar-08. Total 39 stores as of end Mar-08.
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22 May 2008Giordano 2008 First Quarter Results9 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 53.1% N/A Comparable Store Sales 1.1% N/A Change in Number of Outlets 1 1 1 1 1 11 Accounted for 5% of Retail & Distribution turnover for the three months ended Mar-08. Total 15 stores as of end Mar-08.
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22 May 2008Giordano 2008 First Quarter Results10 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 11.4% 11.1% 9.9% Comparable Store Sales 11.4% 8.7% 2.3% Change in Number of Outlets 9 9 9 9 3 32 Accounted for 5% of Retail & Distribution turnover for the three months ended Mar-08. Closed 9 stores in 1Q08 to as part of on-going store network restructuring.
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22 May 2008Giordano 2008 First Quarter Results11 Retail & Distribution Turnover by Market Three Months Ended March 31, 2008 Mainland China, 36% (30%) 1 Hong Kong, 19% (21%) 1 Taiwan, 15% (15%) 1 Singapore, 8% (10%) 1 Australia, 4% (5%) 1 Indonesia, 4% (4%) 1 Malaysia, 3% (3%) 1 Thailand, 2% (2%) 1 Others, 9% (10%) 1 1 YOY figures in brackets
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22 May 2008Giordano 2008 First Quarter Results12 Turnover YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Mainland China 40.8% 29.4% 23.8% Hong Kong 4.4% 4.0% 2.2% Taiwan 11.2% 1.6% 0.6% Singapore 1.1% 1.1% 3.2% Retail & Distribution Total 1 16.4% 13.4% 10.0% South Korea 1 12.0% 5.0% 3.2% Middle East 1 27.0% 13.3% 29.5% 1 South Korea and Middle East sales are not consolidated into Group sales. On March 31, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East. Retail & Distribution Division Operations Highlights
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22 May 2008Giordano 2008 First Quarter Results13 Comparable Store Sales 1 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Mainland China 19.0% 22.1% 15.2% Hong Kong 6.6% 8.9% 8.1% Taiwan 5.8% 0.4% 4.2% Singapore 8.0% 10.2% 10.9% Retail & Distribution Total 2 5.3% 5.8% 2.4% South Korea 2 4.7% 11.0% 8.6% Middle East 2 21.0% 1.4% 10.9% 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration 2 South Korea and Middle East sales are not consolidated into Group sales. On March 31, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East. Retail & Distribution Division Operations Highlights
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22 May 2008Giordano 2008 First Quarter Results14 YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 40.8% 29.4% 23.8% Comp Store Sales 19.0% 22.1% 15.2% Change in Number of Outlets 7 7 7 7 12 91 MAINLAND CHINA Total 827 outlets as of end Mar-08. About 40 additional stores planned for 2Q08, including a number of flagship stores Apr-08 sales up 22.3% YOY.
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22 May 2008Giordano 2008 First Quarter Results15 Total 88 outlets as of end Mar-08. YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 4.4% 4.0% 2.2% Comp Store Sales 6.6% 8.9% 8.1% Change in Number of Outlets 4 4 4 4 2 6 HONG KONG
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22 May 2008Giordano 2008 First Quarter Results16 Total 200 outlets as of end Mar-08. YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 11.2% 1.6% 0.6% Comp Store Sales 5.8% 0.4% 4.2% Change in Number of Outlets 10 3 29 TAIWAN
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22 May 2008Giordano 2008 First Quarter Results17 Total 55 outlets as of end Mar-08. YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 1.1% 1.1% 3.2% Comp Store Sales 8.0% 10.2% 10.9% Change in Number of Outlets 2 2 2 2 1 SINGAPORE
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22 May 2008Giordano 2008 First Quarter Results18 Total 175 outlets as of end Mar-08. YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 12.0% 5.0% 3.2% Comp Store Sales 4.7% 11.0% 8.6% Change in Number of Outlets 2 2 2 2 14 25 SOUTH KOREA
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22 May 2008Giordano 2008 First Quarter Results19 Total 150 outlets as of end Mar-08. YOY Change 3 months ended Mar 31, 2008 3 months ended Mar 31, 2007 12 months ended Dec 31, 2007 Turnover 27.0% 13.3% 29.5% Comp Store Sales 21.0% 1.4% 10.9% Change in Number of Outlets 3 3 3 3 6 16 MIDDLE EAST
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22 May 2008Giordano 2008 First Quarter Results20 No. of outlets As at Mar 31, 2008 As at Dec 31, 2007 Change Giordano & Junior Giordano Ladies Giordano Concepts BSXOthersTotal Mainland China78314426-827820 7 Hong Kong4610428-8892 4 Taiwan15110336-200210 10 Singapore49222-5553 2 Australia58----5861 3 Malaysia6111--6363 Indonesia8221639492 2 Thailand79----7977 2 South Korea172--3-175173 2 Middle East & India150----150147 3 Philippines41--3-4444 Japan13----1314 1 Others45--4-4949 Total1,730391510831,8951,895 GLOBAL RETAIL NETWORK
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